JA Free Enterprise Survey

High School Juniors’ Views on Free Enterprise and Entrepreneurship: A Na<onal Survey Report Prepared for: August 29, 2011 © Harris Interactive

Table of Contents     

Background & Objec7ves Methodology

Key Takeaways

Major Findings

Detailed Findings

Knowledge and Educa7on

Views on Entrepreneurship

Views on Free Enterprise

Views on Government Regula7on

Impact of Educa7on and Race/Ethnicity on Views about Entrepreneurship, Free Enterprise, and Government Regula7on  Being an Entrepreneur

 Student Concerns about the Economy and Job Market

    

Slide 3 4 5 6 15 27 31 34 38 42 54

2

Background & Objec<ves  Junior Achievement and the Na7onal Chamber Founda7on believe that the solu7on to the current na7onal economic instability lies in the principles of a free enterprise system and entrepreneurship. However, exactly what the U.S. popula7on, par7cularly high school students, understands about the basic tenets and benefits of a free enterprise system or entrepreneurship remains unclear.  In an effort to be^er understand where these knowledge gaps exist, Junior Achievement, in partnership with the Na7onal Chamber Founda7on, commissioned Harris Interac7ve to research high school juniors’ understanding of the free enterprise system and entrepreneurship, and how those systems impact job crea7on.  Junior Achievement and the Na7onal Chamber Founda7on will use the results so that they, along with other educa7on-­‐related organiza7ons, can take appropriate steps to educate students about the free enterprise system and entrepreneurship and the cri7cal role they play in economic recovery.

3

Methodology  This survey was conducted online within the United States by Harris Interac7ve on behalf of Junior Achievement and the Na7onal Chamber Founda7on from July 11 -­‐ August 1, 2011.  Surveys were conducted among 2,213 U.S. high school juniors who were 16-­‐17 years old.

Sample was drawn from the Harris Poll Online (HPOL) panel and from one of Harris Interac7ve’s approved sample providers.  Data were weighted to be representa7ve of the U.S. high school juniors popula7on using targets obtained from the U.S. Census. Figures for sex, race/ethnicity, region, parental educa7on, and school loca7on were weighted where necessary to bring them into line with their actual propor7ons in the popula7on.  All sample surveys and polls, whether or not they use probability sampling, are subject to mul7ple sources of error which are most ofen not possible to quan7fy or es7mate, including sampling error, coverage error, error associated with nonresponse, error associated with ques7on wording and response op7ons, and post-­‐survey weigh7ng and adjustments.

Therefore, Harris Interac7ve avoids the words “margin of error” as they are misleading. All that can be calculated are different possible sampling errors with different probabili7es for pure, unweighted, random samples with 100% response rates. These are only theore7cal because no published polls come close to this ideal.

4

Key Takeaways  Juniors are interested in entrepreneurship. The majority of juniors are interested in star7ng or owning their own business someday and are also interested in taking classes on entrepreneurship.  Instruc<on on entrepreneurship, free enterprise, and capitalism is important.

Juniors believe that it is important for high school students to be taught about the concepts of entrepreneurship, free enterprise, and capitalism in school. Educa7on on these topics also impacts the level of understanding of these concepts, although not everyone has access.  Juniors are concerned about the economic outlook. Almost all juniors are worried about being able to get a good job when they finish school and many believe that the job market will be somewhat or very bad.  Juniors believe that entrepreneurship and free enterprise have a central role in job crea<on. Most juniors believe that people who start their own businesses help to create jobs and are drivers of growth for the U.S. economy. The majority also agree that the best economic system for crea7ng jobs is the free enterprise system.

5

Major Findings – Knowledge and Educa<on  High school juniors believe it is important that high school students are taught about entrepreneurship, free enterprise and capitalism in school.

• Nine in ten (91%) believe it is important that students are taught about entrepreneurship, including 41% who believe it is absolutely essen7al.

• Nine in ten (90%) believe it is important students are taught about free enterprise, including 41% who believe it is absolutely essen7al.

• Nine in ten (90%) believe it is important that students are taught about capitalism, including 46% who believe it is absolutely essen7al.

 Around six in ten juniors have been taught about entrepreneurship or free enterprise at school.

• More than one-­‐half of juniors (56%) have been taught about entrepreneurship or star7ng or owning a business, either during a class at school (45%), a school organiza7on or program (13%), or an organiza7on or program outside of school (7%).

• Six in ten juniors (63%) have been taught about free enterprise, either during a school class (57%), a school organiza7on or program (7%), or an organiza7on or program outside of school (4%).

 Nearly two-­‐thirds of juniors are interested in taking a class on entrepreneurship.

6

Major Findings – Knowledge and Educa<on (con<nued)  High school juniors’ knowledge of key economic and business concepts varies. Most say they know about entrepreneurship and can define the term, but knowledge about capitalism or free enterprise is less widespread.

• Eight in ten (84%) juniors say they know a great deal/some about the term “entrepreneur”, and 93% select the correct defini7on.

• Six in ten (59%) say they know a great deal/some about free enterprise, and 67% select the correct defini7on.

• Seven in ten (71%) say they know a great deal/some about capitalism, but fewer are able to correctly iden7fy the defini7on for this term (62%).

7

Major Findings – Views on Entrepreneurship  High school juniors believe that entrepreneurs play an important role in job crea<on and American success.

95% agree that people star7ng their own businesses helps to create jobs.

93% agree that the freedom to start one’s own business contributes to the success of America.

89% believe that encouraging people to start their own businesses to produce new products or services in the marketplace is important for crea7ng more jobs in the U.S. • 84% agree that people who start their own business are the drivers of growth for the U.S. economy.

• 77% agree that star7ng one’s own business is the best way to create new ideas or products.

• • •

 Juniors also acknowledge the risk that is taken on by entrepreneurs and the sacrifices they make in star<ng their own businesses.

• •

73% agree that star7ng one’s own business is risky and ofen does not succeed.

72% agree that those who start their own businesses have li^le 7me for themselves because of their business demands.

 Juniors are more divided when asked if entrepreneurs make more money than those who work for other people.

•

Nearly half (46%) disagree that individuals who start their own businesses have a greater chance of becoming rich than people who work for already exis7ng businesses, while 54% agree with this view.

8

Major Findings – Views on Free Enterprise  A majority of students have a posi<ve view of capitalism and even more have a posi<ve view of free enterprise.

• Seven in ten juniors (70%) say that they have a very/somewhat posi7ve view of capitalism (afer being provided a defini7on).

• Eight in ten (84%) say that they have a very/somewhat posi7ve view of free enterprise (afer being provided a defini7on).

 High school juniors believe that free enterprise plays an important role in job crea<on and economic growth.

• Three-­‐quarters (74%) agree that the best economic system for crea7ng jobs is the free enterprise system.

• Two-­‐thirds (65%) agree that the free enterprise system is the best way to increase the standard of living for everyone.

• Almost nine in ten (87%) agree that the free enterprise system encourages the development of new technologies.

9

Major Findings – Views on Government Regula<on  The majority of juniors support limited government regula<on for businesses and profits.

• 84% think that allowing private business to operate compe77vely for profit with limited government regula7on is absolutely essen7al or somewhat important for crea7ng more jobs.

• 77% agree that compe77on among business is the best form of consumer protec7on.

• 74% agree that prices should be set by supply and demand in markets free from government control.

• 72% disagree that the amount of profit made by a business should be regulated by the government.

 However, students feel that there are certain situa<ons, such as protec<ng employees and jobs, where government involvement is important.

• 82% agree that government laws and regula7ons are important to protect employees and jobs.

• 80% believe that it is absolutely essen7al or somewhat important for job crea7on in the U.S. that there are government programs to provide training to people.

10

Major Findings – Views on Government Regula<on (con<nued)  Juniors are more divided on the role that government should play regarding big business and the U.S. economy.

• 56% agree and 44% disagree that government should step in and save the businesses that are “too important to fail” than to let them go out of business.

• 54% agree and 46% disagree that our most important industries should be closely regulated by government.

• 47% agree and 53% disagree that the government should play a larger role in U.S. economic affairs.

• 44% agree and 56% disagree that when a business gets big, it should be regulated by the government.

11

Major Findings – Being an Entrepreneur  One in seven juniors (15%) has experience in star<ng their own business.  Six in ten juniors (64%) are interested in star<ng or owning their own business someday.

Students who are interested in star7ng or owning their own business are more likely than others to have someone in their family who is an entrepreneur (54% vs. 39%).

• They are less likely to view star7ng their own business as risky (69% vs. 79%), but they are more likely to worry “a lot” about being able to find a good job (36% vs. 27%).

• Two in ten (19%) students who are interested in star7ng their own business have started their own business at some point.

•

 Juniors believe that being skilled with managing money, communica<on, and <me management are more important quali<es for a successful entrepreneur. Having a college educa<on is not seen by juniors as being an essen<al tool for becoming a successful entrepreneur.

The main characteris7cs that juniors believe are absolutely essen7al for someone to be successful in star7ng or owning his or her own business are being good at managing money (83%), being able to communicate effec7vely with others (80%), being able to manage 7me effec7vely (74%), and being able to plan for the future (74%).

• Juniors are less likely to place as much importance on having a college educa7on (38%), gelng on-­‐ the-­‐job training by working for an entrepreneur (27%), liking to be the first to try new things (26%), or knowing someone who has started their own business (17%).

•

12

Major Findings – Student Concerns about the Economy & Job Market  Seven in ten high school juniors believe that the economy will either stay the same or get worse in the coming year, and nine in ten are concerned about their job prospects a`er they finish school.

• Three in ten juniors (29%) believe that the economy will improve in the coming year, but most believe that the economy will either stay the same (46%) or get worse (25%).

• Juniors’ concerns about the economy extend to their somewhat pessimis7c feelings about the job market. o Half of juniors (47%) believe that the job market will be somewhat/very bad when they finish school, compared to 28% who believe that the job market will be very/somewhat good. o Nine in ten juniors worry “a li^le” (56%) or “a lot” (33%) about being able to get a good job afer they finish school. Only one in ten (11%) is not at all worried about his or her job prospects.

13

Detailed Findings

14

Knowledge and Educa<on

15

High school juniors believe in the importance of being taught in school about entrepreneurship, free enterprise, and capitalism.

Importance for High School Students to Learn Topic in School Not at all important

Not too important

Somewhat important

Absolutely essen7al

91% Entrepreneur 2% 7%

50%

41% 90%

Free enterprise 2% 7%

49%

41%

90% Capitalism 3% 8%

43%

46%

BASE: High School Juniors (n=2213); Q1142. How important is it that high school students are taught about the following topics in school?

16 © Harris Interactive

About half of high school juniors have been taught about entrepreneurship at school, typically in an economics class.

Ever Been Taught About Entrepreneurship at….

56% have been taught

Among Those Who Were Taught About Entrepreneurship in a Class at School: School Classes in Which Entrepreneurship was Taught

about entrepreneurship

An organiza7on or program outside of school

7% 44% None

43%

Economics

An organiza7on or program at school

13% 45% A class at school

Business

32%

Social Studies

31% 27%

History Government or Poli7cal Science

25%

Specific class on entrepreneurship

7%

Other

8%

BASE: High School Juniors (n=2213); Q1110. Have you ever been taught about entrepreneurship or star7ng or owning a business in…?/ BASE: Taught about Entrepreneurship in School (n=990); Q1115. In what class(es) did you learn about this topic? © Harris Interactive

17

Six in ten high school juniors have been taught about free enterprise in a class at school, typically in a history or economics class.

Ever Been Taught About Free Enterprise at….

63% have been taught

about free enterprise An organiza7on An organiza7on or or program program at school outside of school

None

41%

History

37%

Economics

4% 7%

37%

Among Those Who Were Taught About Free Enterprise in a Class at School: School Classes in Which Free Enterprise was Taught

57% A class at school

Social Studies

30%

Government or Poli7cal Science

30% 18%

Business Specific class on free enterprise Other

1% 4%

BASE: High School Juniors (n=2213); Q1130. Have you ever been taught about free enterprise in…?/ BASE: Taught about Free Enterprise in School (n=1332); Q1135. In what class(es) did you learn about this topic? © Harris Interactive

18

Instruc<on about key concepts differ by race/ethnicity and socioeconomic status.

Black/African American and Hispanic students are…

• More likely than other students to have been taught entrepreneurship in a program outside of school (Black/African American: 11% and Hispanic: 10% vs. White/Other: 6%), but are as likely to have been taught at school.

• Less likely than other students to have been taught about free enterprise in a class at school (48% and 52% vs. 62%).

Students from lower socioeconomic backgrounds* are…

• Less likely to have been taught about entrepreneurship in a class at school (40% vs. 48%).

• Less likely than others to have been taught about free enterprise in a class at school (46% vs. 63%).

* Note: Students from lower socioeconomic backgrounds are defined as those with parents who have no more than a high school educa7on

BASE: High School Juniors (n=2213); Q1110. Have you ever been taught about entrepreneurship or star7ng or owning a business in…?/Q1130. Have you ever been taught about free enterprise in…? © Harris Interactive

19

Two-­‐thirds of juniors are interested in taking a class on entrepreneurship or a class on star<ng or owning a business.

Interest in Taking Class on Entrepreneurship or a Class on Star<ng or Owning a Business Not at all interested

Not too interested

Somewhat interested

Very interested

63% are interested in taking a class on entrepreneurship

11%

27%

45%

18%

37% are not

interested in taking a class on entrepreneurship BASE: High School Juniors (n=2213); Q1140. How interested would you be in taking a class on entrepreneurship or a class on star7ng or owning a business?

20 © Harris Interactive

Most say they know “a great deal” or “some” about entrepreneurship and can define the term.

Knowledge of Entrepreneurship Level of Knowledge about Entrepreneurship

A great deal

93%

36%



Some

84% Not too much -­‐ I've just heard the term Nothing at all -­‐ I've never heard of this

Which if the following best describes an entrepreneur?

2%

48%

14% 2%

A person who starts a business to produce a new product or service in the marketplace A person who nego7ates between individuals or groups to help solve disagreements

1%

A person who believes that too much of the world’s wealth is held by a small number of people

5%

Don’t know

Note:  = correct defini7on BASE: All Respondents (n=2213); Q805. How much do you know about each of the following items?/Q825. Which of the following best describes an entrepreneur? © Harris Interactive

21

A majority say they know “a great deal” or “some” about free enterprise and can define the term.

Knowledge of Free Enterprise Level of Knowledge about Free Enterprise

Which of the following best describes free enterprise?

15%

67%

A great deal

Some

59%



43%

Not too much -­‐ I've just heard the term Nothing at all -­‐ I've never heard of this

10%

The freedom of individuals to seek employment in any industry or area without rules or restric7ons

4%

The policy to provide people access to products or services without charging a fee

35%

6%

The freedom of private business to organize and operate for profit in a compe77ve system with limited government regula7on

19%

Don’t know

Note:  = correct defini7on BASE: All Respondents (n=2213); Q805. How much do you know about each of the following items?/Q830. Which of the following best describes the concept of free enterprise? © Harris Interactive

22

A majority say they know “a great deal” or “some” about capitalism and can define the term.

Knowledge of Capitalism Level of Knowledge about Capitalism

Which of the following best describes capitalism?

25%

62%

A great deal



Some

Not too much -­‐ I've just heard the term

71% 46%

Nothing at all -­‐ I've never heard of this

19% 5%

25% 4%

14%

An economic system where the means of produc7on are privately owned and operated for profit An economic system in which all property is owned and shared by society as a whole, with none belong to individual ci7zens An economic system in which government is believed to be unnecessary Don’t know

Note:  = correct defini7on BASE: All Respondents (n=2213); Q805. How much do you know about each of the following items?/Q835. Which of the following best defines capitalism? © Harris Interactive

23

One-­‐quarter of juniors have par<cipated in an organiza<on that is focused on business or entrepreneurship.

Par<cipa<on in Organiza<ons Related to Business or Entrepreneurship Par7cipated in the past

School club or organiza7on focused on business or entrepreneurship

Junior Achievement

9%

Par7cipate now

8%

17%

23% have ever

9%

2% 11%

par7cipated in one of these organiza7ons, including 9% who currently par7cipate

Young Entrepreneurs 2% 1% 3% Academy Black/African American students (30%) are more likely than Hispanic (16%) or White/Other (13%) students to par7cipate in school clubs or organiza<ons focused on business or entrepreneurship.

BASE: High School Juniors (n=2213); Q1145. Have you ever par7cipated in any of these organiza7ons? © Harris Interactive

24

Students who have been taught about entrepreneurship and free enterprise know more about these terms.

Entrepreneurship Total

Free Enterprise

Taught Not Taught Taught Not Taught

Entrepreneurship Knows “a great deal” or ”some” about term

84%

90%

76%

89%

75%

Can iden7fy correct defini7on

93%

96%

88%

97%

85%

Knows “a great deal” or ”some” about term

59%

65%

51%

74%

32%

Can iden7fy correct defini7on

67%

69%

64%

78%

48%

Knows “a great deal” or ”some” about term

71%

77%

64%

82%

53%

Can iden7fy correct defini7on

62%

66%

57%

70%

48%

Free Enterprise

Capitalism

Note: Numbers in bold show significant differences between subgroups.

25 © Harris Interactive

Knowledge of key terms varies by socioeconomic background and gender.

Students from lower socioeconomic backgrounds* are…

• Less likely than others to say they know “a great deal” or “some” about entrepreneurship (76% vs. 87%) or iden7fy the correct defini7on (89% vs. 95%).

• Less likely than others to say they know “a great deal” or “some” about free enterprise (62% vs. 75%) or iden7fy the correct defini7on (60% vs. 71%).

• Less likely than others to say they know “a great deal” or “some” about capitalism (50% vs. 62%) or iden7fy the correct defini7on (55% vs. 66%).

Boys are…

• As likely as girls to say they know “a great deal” or “some” about entrepreneurship (85% vs. 83%).

• More likely than girls to say they know “a great deal” or “some” about free enterprise (62% vs. 55%).

• More likely than girls to say they know “a great deal” or “some” about capitalism (76% vs. 66%). * Note: Students from lower socioeconomic backgrounds are defined as those with parents who have no more than a high school educa7on .

26 © Harris Interactive

Views on Entrepreneurship

27

Nearly all juniors say that they admire entrepreneurs and that entrepreneurs are deserving of media aren<on.

How much do you admire people who start or own their own businesses?

How much do you agree or disagree: “People who create new businesses get too much a5en6on from the media”

3% 15%

49%

Strongly agree Somewhat agree

A great deal

95%

Some Very li^le

Somewhat disagree

48% 82% disagree

Strongly disagree

that entrepreneurs get too much a^en7on

45% 34% 5% Note: Less than 1% said that that they admire entrepreneurs “not at all” BASE: High School Juniors (n=2213); Q910. How much do you admire people who start or own their own businesses?/Q915. How much do you agree or disagree with the following?

28 © Harris Interactive

High school juniors believe that entrepreneurs play an important role in job crea<on and American success.

Percep<ons of Entrepreneurship and Its Influence on Job Crea<on and the Economy Somewhat Agree

People star7ng their own businesses helps create jobs

45%

Strongly Agree

50%

95%

Job Crea<on

89% believe that encouraging people to start their own businesses to produce new products or services in the market place is important for crea<ng more jobs in the U.S.

The freedom to start one's own business contributes to the success of America

45%

People who start their own businesses are the drivers of growth for the U.S. economy Individuals who start their own businesses have more of a chance to be crea7ve than people who work for already exis7ng businesses

57% 47%

Star7ng one's own business is the best way to create new ideas or products

93%

48% 26% 31%

54%

Although people who start businesses create jobs, most of those jobs are low paying and don't contribute much to the economy

32%

6% 38%

So many new businesses fail that new businesses contribute li^le to the growth of the U.S. economy

31%

5% 36%

23%

84% 78%

Create New Ideas or Products

77%

62% disagree with this 64% disagree with this

Nega<ve Percep<ons of Entrepreneurship

BASE: High School Juniors (n=2213); Q915/Q920. How much do you agree or disagree with the following?/Q940. How important is each of the following to crea7ng more jobs for more people in the United States? © Harris Interactive

Economic Growth

29

Juniors acknowledge risks and sacrifices for entrepreneurs, and many do not assume that entrepreneurs make more money than others.

Percep<ons of the Risks and Benefits for Entrepreneurs Somewhat Agree

Star7ng one's own business is risky and ofen does not succeed

Individuals who start their own businesses have li^le 7me for themselves because their business demands almost all of their 7me

Individuals who start their own businesses have a greater chance of becoming rich than people who work for already exis7ng businesses

Strongly Agree

73% 18%

55%

72% 20%

52%

41%

13% 54%

BASE: High School Juniors (n=2213); Q920. How much do you agree or disagree with the following?

30 © Harris Interactive

Views on Free Enterprise

31

A majority of students have a posi<ve view of capitalism and even more have a posi<ve view of free enterprise.

How posi<ve or nega<ve is your view of capitalism?

How posi<ve or nega<ve is your view of free enterprise?

23% Very posi7ve

70%

Somewhat posi7ve Somewhat nega7ve

30%

47%

Very nega7ve

Very posi7ve Somewhat posi7ve

84%

Somewhat nega7ve Very nega7ve

54%

26% 4%

15%

1%

BASE: High School Juniors (n=2213); Q925. How posi7ve or nega7ve is your view of capitalism?/Q930. How posi7ve or nega7ve is your view of free enterprise?

32 © Harris Interactive

High school juniors believe that free enterprise plays an important role in job crea<on and economic growth.

Percep<ons of Free Enterprise and Its Influence on Job Crea<on and the Economy How much do you agree or disagree?

Somewhat Agree

The free enterprise system encourages the development of new technologies The best economic system for crea7ng jobs is the free enterprise system The free enterprise system is the best way to increase the standard of living for everyone

How important are the following for crea<ng more jobs?

Strongly Agree

61%

56%

52%

Somewhat Important

26% 87%

The ability to export and import goods with other countries

Absolutely Essen7al

45%

88%

17% 74%

13% 65%

Allowing private business to operate compe77vely for profit with limited government regula7on

54%

BASE: High School Juniors (n=2213); Q935. How much do you agree or disagree with the following? Q940. How important is each of the following to crea7ng more jobs for more people in the United States? © Harris Interactive

43%

30%

84%

33

Views on Government Regula<on

34

The majority of juniors support limited government regula<on for businesses and profits.

Percep<ons on Government Regula<on (% Strongly/Somewhat Agree)

Somewhat Agree

Strongly Agree

Compe77on among business is the best form of consumer protec7on

51%

27%

Prices should be set by supply and demand in markets free from government control

52%

23%

People who want to start their own businesses do best when government gets out of their way and lets them do what they want

47%

Government regula7on ofen prevents companies from being able to compete in the global economy

47%

The amount of profit made by a business should be regulated by the government

22% 6% 28%

77%

74%

19% 66%

13% 60%

72% disagree that profit should be regulated by the government

BASE: High School Juniors (n=2213); Q935. How much do you agree or disagree with the following?

35 © Harris Interactive

Juniors believe there are certain situa<ons, such as protec<ng employees and jobs, where government involvement is important.

How much do you agree or disagree?

Somewhat Agree

Strongly Agree

Government laws and regula7ons are important to protect employees and jobs

54%

27%

People who want to start their own businesses ofen need a helping hand from government to get started

52%

15% 67%

82%

How important are the following for crea<ng more jobs?

Somewhat Important

Government programs to provide training to people

Absolutely Essen7al

53%

27%

80%

BASE: High School Juniors (n=2213); Q935. How much do you agree or disagree with the following? /Q940. How important is each of the following to crea7ng more jobs for more people in the United States? © Harris Interactive

36

Juniors are divided on the role that government should play regarding big business and the U.S. economy.

How much do you agree or disagree?

Somewhat Agree

Some businesses are just too important to be allowed to fail. The government should step in and save them rather than let them go out of business The United States' most important industries should be closely regulated by government

The government should play a larger role in U.S. economic affairs

When a business gets big, it should be regulated by the government

Strongly Agree

43%

41%

37%

34%

56%

13%

12%

54%

10% 47%

9%

44%

BASE: High School Juniors (n=2213); Q935. How much do you agree or disagree with the following?

37 © Harris Interactive

Impact of Educa<on and Race/Ethnicity on Views about Entrepreneurship, Free Enterprise, and Government Regula<on

38

Students who have been taught about free enterprise have a more posi<ve view of it and are more likely to support limits on government regula<on.

Those have been taught about free feree nterprise are… are…

Those wwho ho have been taught about enterprise

• More likely than others to have a posi<ve view of capitalism (74% vs. 63%) and free enterprise (88% vs. 78%).

• More likely than others to believe free enterprise plays an important role in job crea<on and economic growth.

-­‐ More agree that the free enterprise system encourages the development of new technologies (88% vs. 83%).

-­‐ More think that allowing private business to operate compe77vely for profit with limited government regula7on is absolutely essen7al/somewhat important for crea7ng more jobs (86% vs. 80%).

-­‐ More agree that the best economic system for crea7ng jobs is the free enterprise system (77% vs. 67%).

-­‐ More agree that the free enterprise system is the best way to increase the standard of living for everyone (67% vs.

61%).

• More likely than others to support limited government regula<on for business and profits.

-­‐ More agree that compe77on among business is the best form of consumer protec7on (81% vs. 70%).

-­‐ More agree that prices should be set by supply and demand in markets free from government control (77% vs.

70%).

-­‐ More disagree that the amount of profit made by a business should not be regulated by the government (75% vs.

66%).

• Less likely than others to agree that people who want to start their own businesses o`en need a helping hand from government to get started (65% vs. 71%).

• Less likely to agree that the government should play a larger role in U.S. economic affairs (42% vs. 55%).

39 © Harris Interactive

Black/African-­‐American and Hispanic students have a less posi<ve view of free enterprise than other students.

Black/African-­‐American and ispanic students are… are…

Black/African-­‐American aH nd Hispanic students

• Less likely than others to have a posi<ve view of capitalism (Black/African American: 62% and Hispanic: 65% vs. White/Other: 74%) and free enterprise (75% and 80% vs. 87%).

• Less likely than others to believe free enterprise plays an important role in job crea<on and economic growth.

– Fewer think that allowing private business to operate compe77vely for profit with limited government regula7on is absolutely essen7al/somewhat important for crea7ng more jobs (74% and 76% vs. 89%).

– Fewer agree that the best economic system for crea7ng jobs is the free enterprise system (60% and 67% vs. 79%).

– Fewer agree that the free enterprise system is the best way to increase the standard of living for everyone (52% and 62% vs. 69%).

40 © Harris Interactive

Black/African-­‐American and Hispanic students are less likely to support limits to government regula<on than others.

Black/African-­‐American and ispanic students are… are…

Black/African-­‐American aH nd Hispanic students •

Less likely than others to support limited government regula<on for business and profits.

– – –

•

More likely than others to feel that there are certain situa<ons where government involvement is important.

– –

•

Fewer agree that compe77on among business is the best form of consumer protec7on (Black/African American: 69% and Hispanic: 72% vs. White/Other: 81%).

Fewer disagree that the amount of profit made by a business should not be regulated by the government (64% and 67% vs. 75%).

Fewer agree that people who want to start their own businesses do best when the government gets out of their way and lets them do what they want (55% and 62% vs. 70%).

More believe that it is absolutely essen7al/somewhat important for job crea7on in the U.S. that there are government programs to provide training to people (86% and 84% vs. 76%).

More agree that people who want to start their own businesses ofen need a helping hand from government to get started (74% and 74% vs. 64%).

More likely than others to believe the government should play a role regarding businesses and the U.S. economy.

– – –

More agree that government should step in and save the businesses that are “too important to fail” than to let them go out of business (71% and 64% vs. 51%).

More agree that the government should play a larger role in the U.S. economic affairs (64% and 58% vs. 40%).

More agree that when a business gets big, it should be regulated by the government (50% and 50% vs. 40%).

41 © Harris Interactive

Being an Entrepreneur

42

Juniors believe that being good at managing money, communica<ng effec<vely, planning, and <me management are the most important quali<es to be a successful entrepreneur.

Important Characteris<cs Needed to be a Successful Entrepreneur (% Absolutely Essen@al)

83%

Being good at managing money

80%

Being able to communicate effec7vely with others Being able to plan for the future

74%

Being able to manage 7me effec7vely

74%

Being able to react quickly to unexpected changes

70%

Being a leader

69%

Being persistent even when things go wrong

68%

Being able to make connec7ons with people

63%

Being able to manage risk effec7vely

63%

Being comfortable compe7ng with others

63%

Having good ideas for new products or services

63% 38%

Having a college educa7on Gelng on-­‐the-­‐job training working for someone who has started a business Liking to be the first to try new things Knowing someone else who started their own business

27% 26%

Having a college educa7on is not seen as being an essen7al tool for becoming a successful entrepreneur

17%

BASE: High School Juniors (n=2213); Q905. How important is each of the following in order for someone to be successful in star7ng or owning his or her own business?

43 © Harris Interactive

More than six in ten juniors are interested in star<ng or owning their own business someday.

How interested are you in star<ng or owning your own business someday?

19%

64% are very or

somewhat interested in star<ng or owning their own business someday

64% 45% Very interested Somewhat interested

26% 10%

Not too interested Not at all interested

BASE: High School Juniors (n=2213); Q730. How interested are you in star7ng or owning your own business someday?

44 © Harris Interactive

Students who are interested in star<ng their own business are more likely to iden<fy with entrepreneurial characteris<cs.

Profile of Entrepreneurial Characteris<cs Interested in Having Own Business vs. Not Interested in Having Own Business I can plan for the future

(%A lot like me)

I am comfortable compe7ng with others

39%

I can communicate effec7vely with others I can be persistent even when things go wrong

28%

I am able to make connec7ons with people

30%

I am good at managing money I can react quickly to unexpected changes

22%

I can manage my 7me effec7vely I like to be the first to try new things

I can manage risk effec7vely

19%

43%

18%

39%

38% 31% 36% 35% 31% 34% 30%

12%

48%

46% 38% 43%

29%

I think of myself as a leader

I have good ideas for new products or services

52%

40%

29%

Interested in Star7ng Own Business Not Interested Star7ng Own Business

Note: Juniors interested in star7ng their own business are significantly more likely to say these statements are “a lot like me” than those who are not interested in star7ng their own business, with the excep7on of “I can manage my 7me effec7vely.”

BASE: High School Juniors Interested in Having Own Business (n=1356); Not Interested in Having Own Business (n=857); Q725. How well does each of these statements describe you?

45 © Harris Interactive

Juniors who are interested in star<ng their own business someday are more likely than those who are not interested to be boys, Black/African American, or Hispanic.

Who are the juniors who want to start their own business someday?

Demographic Differences

They are…

• More likely to be boys (56% vs. 45%) • More likely to be Black/African American (18% vs. 13%) or Hispanic (21% vs. 14%) • However, on other key demographic characteris7cs, such as urbanicity and socioeconomic level (parents’ level of educa7on), those who are interested in being entrepreneurs do not differ from other students.

46 © Harris Interactive

Demographic Profile –

Those Interested in Star<ng Own Business vs. Those Not Interested in Star<ng Own Business Total

Interested

Not Interested

52% 48%

56% 44%

45% 55%

55% 18% 16% 9%

50% 21% 18% 9%

63% 14% 13% 9%

20% 23% 35% 21%

20% 21% 36% 22%

20% 26% 33% 20%

33% 40% 24%

35% 39% 23%

31% 42% 25%

86% 10%

84% 11%

88% 10%

27% 34% 37%

27% 34% 36%

26% 32% 40%

(n=2213)

Gender Male Female Race/Ethnicity White Hispanic Black/African American Other Region East Midwest South West Urbanicity Urban Suburban Rural School Type Public Private Parental Educa<on (proxy for socioeconomic status) High school or less Some college College or more

(n=1356)

Note: Numbers in bold show significant differences between subgroups.

(n=857)

47

Juniors interested in entrepreneurship are more likely to have someone in their family who is an entrepreneur or to have started their own business themselves at one point.

They are also more likely to worry “a lot” about finding a job.

Who are the juniors who want to start their own business someday?

Differences in Experiences

They are…

• More likely to have someone in their family who is an entrepreneur (54% vs. 39%) • More likely to have started their own business at some point (19% vs. 8%) • More likely to worry “a lot” about being able to find a good job afer they finish school (36% vs. 27%) • Just as likely to have been taught in a class at school about entrepreneurship (45% vs.

44%)

48 © Harris Interactive

Students who are interested in star<ng their own business have more posi<ve views of entrepreneurship, par<cularly regarding job crea<on and product innova<on.

Who are the juniors who want to start their own business someday?

Differences in Altudes

They are…

• More likely to say they admire people who start or own their own business a great deal (62% vs. 28%).

• More likely to believe that entrepreneurs play an important role in job crea<on and American success.

-­‐ More agree that people star7ng their own businesses helps to create jobs (96% vs. 92%).

-­‐ More agree that the freedom to start one’s own business contributes to the success of America (94% vs. 90%).

-­‐ More believe that encouraging people to start their own businesses to produce new products or services in the marketplace is important for crea7ng more jobs in the U.S. (91% vs. 86%).

-­‐ More agree that star7ng one’s own business is the best way to create new ideas or products (82% vs. 70%).

-­‐ More agree that individuals who start their own business have more of a chance to be crea7ve than people who work for already exis7ng businesses (80% vs. 75%).

• Less likely to see risks of entrepreneurship and more likely to see rewards.

-­‐ Fewer agree that star7ng one’s own business is risky and ofen does not succeed (69% vs. 79%).

-­‐ More agree that individuals who start their own businesses have a greater chance of becoming rich than people who work for already exis7ng businesses (59% vs. 47%).

• More likely to have a posi<ve view of free enterprise (86% vs. 81%).

49 © Harris Interactive

One in seven juniors has ever started their own business, including one in ten who are currently working at their own business.

Personal Experiences with Entrepreneurship Have you ever started your own business?

15% of juniors have ever started their own business

85% No

Among Those Who Have Started Their Own Business:

Most Popular Types of Businesses Started: Yes, but I’m not working at it anymore Yes, and I am 6% s7ll working at it 9%

• Lawn mowing, landscaping, yard work, other labor-­‐ related work (30%) • Sales (20%) -­‐ selling self-­‐created items (7%) or re-­‐ selling items (6%) • Baby-­‐silng or pet-­‐silng (16%) • Tutoring (13%) • Computer-­‐related services (web design, repair, etc.)

(7%)

Top Reasons for Star<ng Own Business: • To make money (58%) • Enjoy the type of work/hobby (17%) • Saw a need/opportunity (13%) • Difficulty finding a job (8%) BASE: High School Juniors (n=2213); Q1010. Have you ever started your own business?

BASE: Juniors who have started own business (n=319); Q1015. What was the business?/ Q1020. Why did you decide to start your own business?

© Harris Interactive

50

In Their Own Words…

Among Those Who Have Started Their Own Business – What Type of Business Did They Start and Their Reasons for Star<ng It

Type of business: “My business is all about film produc7on. Currently I'm working on a new animated TV series” Reason for star<ng: “I believe in crea7ng job opportuni7es not looking for job opportuni7es.”

-­‐16 year old girl

Type of business: “Piano Lessons” Reason for star<ng: “I love to teach and I need money. And I know that I get be^er at piano when I teach and will therefore have more opportuni7es in a music career in the future.”

– 17 year old boy

Type of business: “A science tutoring service” Reason for star<ng: “Several mentors encouraged me to help other students in chemistry and biology.”

-­‐ 17 year old boy

Type of business: “I took professional quality photographs for local families” Reason for star<ng: “I had a passion for photography and saw an opportunity to share it and expand it.”

– 16 year old girl

Type of business: “Jewelry making” Reason for star<ng: “To be crea7ve and make my own money.”

-­‐17 year old girl

Type of business: “Sofware engineering services primarily crea7on of customized computer applica7ons” Reason for star<ng: “Interest in the technology and in learning how to manage a business.”

-­‐ 17 year old boy Type of business: “Yard work and landscaping” Reason for star<ng: “I was too young to work at a "real" job so my cousin and I started our own thing.”

-­‐17 year old girl

BASE: Juniors who have started own business (n=319); Q1015. What was the business?/ Q1020. Why did you decide to start your own business?

51 © Harris Interactive

Three-­‐quarters of juniors know someone who has started their own business, including one-­‐half who have a family member who is an entrepreneur.

Personal Experiences with Entrepreneurship Who do you know who has started their own business?

24%

My mother or father A brother or sister

3% 31%

Another family member 24%

A family friend A friend my own age Someone else No one -­‐ I don't know anyone who has started their own business

49% have someone in their family who has started their own business

One in ten juniors has a father (15%) or mother (10%) who is currently self-­‐ employed or has his or her own business.

6% 5% 34%

BASE: High School Juniors (n=2213); Q1025. Who do you know who has started their own business?/Q1030. Which one of the following best describes your mother’s employment status?/Q1035. Which one of the following best describes your father’s employment status? © Harris Interactive

52

Half of juniors have held a paid job. In the future, juniors would most like to work at either a large company, hospital or medical facility, or their own business.

Work Experience and Future Plans Have you ever had a paid job?

53% of juniors have ever held a paid job

47% No

A large company

25% 21%

A hospital or medical facility

21%

Yes, in the past

In the future, where would you most like to work?

19%

My own business

35% Yes, now

The government

9%

A school or university

6%

A small business

6%

A family-­‐owned business

2%

A not-­‐for-­‐profit organiza7on

2%

Somewhere else

10%

BASE: High School Juniors (n=2213); Q1005. Have you ever had a paid job?/Q735. In the future, where would you most like to work?

53 © Harris Interactive

Student Concerns about the Economy and Job Market

54

Three in ten juniors believe the economy will improve in the coming year, but most feel that the economy will either stay the same or get worse.

In the coming year, do you expect the economy to…?

Improve

29%

Stay the Same

46%

Get Worse

25% Series 1

BASE: High School Juniors (n=2213); Q710. In the coming year, do you expect the economy to…?

55 © Harris Interactive

Eight in ten juniors plan to earn a bachelor’s degree or more. Nine in ten are worried “a lirle” or “a lot” about their job prospects a`er school.

What is the highest level of educa<on that you plan to get?

How much do you worry about being able to get a good job when you finish school?

5%, Less than

11%

high school

4%, High

school diploma or GED

45%

Graduate or professional degree

4%,

Cer7ficate from a technical or trade school

Not at all A li^le

56% 89% are

35%

Bachelor’s degree

worried “a li^le” or “a lot” about finding a job

A lot

6%, Associate’s

degree or degree from a 2-­‐ year college

80% of juniors plan to earn at least a bachelor’s degree

33%

BASE: High School Juniors (n=2213); Q705. What is the highest level of educa7on that you plan to get?/ Q720. How much do you worry about being able to get a good job when you finish high school/graduate high school/graduate college? © Harris Interactive

56

Half of juniors believe the job market will be very or somewhat bad when they finish school.

Expecta<ons of What the Job Market Will Be Like A`er They Finish School

2% 28% believe

26% Very good

the job market will be very/ somewhat good

Somewhat good Neither good nor bad

25%

Those who do not plan to pursue higher educa<on are more likely to feel that the job market will be very/somewhat bad (HS degree or less: 55% vs. some college: 57% vs. college degree or more: 44%).

Somewhat bad Very bad

39%

47% believe the

job market will be very/somewhat bad

There is no difference on the job market outlook between those who are interested in star<ng a business and those who are not.

8% BASE: High School Juniors (n=2213); Q715. What do you think the job market will be like when you finish high school/graduate high school/graduate college?

57 © Harris Interactive

Juniors who expect the job market to be bad when they finish school are generally from all types of backgrounds, although those who are White and from rural areas are more likely than their counterparts to feel nega<ve about the future job market.

Demographic Profile – Those Who Expect Job Market to be Good vs. Those Who Expect Job Market to be Bad Gender Male Female Race/Ethnicity White Hispanic Black/African American Other Region East Midwest South West Urbanicity Urban Suburban Rural School Type Public Private Parental Educa<on (proxy for socioeconomic status) High school or less Some college College or more © Harris Interactive

Expect Job Market to be…

Total

Very/Somewhat Good

Very/Somewhat Bad

52% 48%

54% 46%

55% 45%

55% 18% 16% 9%

46% 21% 20% 11%

61% 16% 13% 8%

20% 23% 35% 21%

22% 20% 38% 20%

21% 25% 32% 22%

33% 40% 24%

37% 42% 19%

31% 40% 27%

86% 10%

88% 10%

85% 11%

27% 34% 37%

24% 34% 41%

29% 33% 36%

(n=2213)

(n=621)

Note: Numbers in bold show significant differences between subgroups.

(n=1047)

58

Report Prepared for: August 29, 2011 © Harris Interactive